Coca-Cola Buys 17% Stake in Monster Beverage for $2B

by TheStreet
1:09 mins

Coca-Cola Buys 17% Stake in Monster Beverage for $2B

by TheStreet
1:09 mins

Shares of Monster Beverage surged following the market's close on Thursday after Coca-Cola said it will take a 16.7% stake for $2.15 billion in the energy drink maker. The two companies are calling it a long term strategic partnership that should help speed up growth in the fast-growing energy drink category. Monster will gain access to coke's worldwide bottling system. As part of the deal, there will be some brand transfers. Coke will transfer its NOS, Full Throttle and Burn brands, among others, to Monster. Monster will transfer its non-energy businesses, including Hansen's Natural Sodas, Peace Tea, Hubert's Lemonade and Hansen's Juice Products, to Coca-Cola. Coca-Cola's CEO Muhtar Kent said, 'This long-term partnership aligns us with a leading energy player globally, brings financial benefit to our Company and our bottling partners, and supports broader commercial strategies with our customers.' The deal should be completed by the end of 2014 or early 2015. TheStreet's Ruben Ramirez has details from New York.